updated 09:55 am EDT, Fri September 18, 2009

May put record labels in precarious position

Apple is gradually de-emphasizing music in its business, a policy which could have much broader ramifications, a report argues. Although the company's iPod and iTunes updates on September 9th were nominally themed around music, the company notably placed a stronger focus on games, as well as the video camera added to the iPod nano. Music was only essential in terms of iTunes, with the addition of Genius Mixes, iTunes LP and a new iTunes Store layout.

The App Store is believed to be the current center of Apple's attention, as iPod sales are flattening after years of growth. The problem, says BusinessWeek, is that record labels are now more dependent than ever on Apple, as some 90 percent of US digital music sales are handled through the iTunes Store, and approximately 75 percent of all media players sold are iPods. CD sales are continuing to fall, which means that without Apple's help, the record industry will further shrink.

"Our biggest concern would be if they started resting on their laurels," says an unidentified senior label executive. "We need them to continue innovating."

Apple management insists that music is still important to the company, to the extent that the size of its music team has been increasing for the past two years. iTunes Store downloads, meanwhile, are said to be growing quickly. The company is also opening the App Store to services which compete with iTunes, such as Rhapsody, which does redirect some sales to Apple but also offers rival sales and subscriptions.

What report?

How about a link to the article? On the face of it, the hypothesis is interesting but seemingly false. They hold a media event called "It's only rock and roll" hosted by Steve Jobs and keep growing their music team, so it doesn't seem like much of a problem.

I do like the music industry fighting Apple whenever Apple proposes anything and then pointing out the "Apple needs to keep innovating" to keep them healthy. But I would rather read the real article whereever it may be found.

Music suits

"Our biggest concern would be if they started resting on their laurels," says an unidentified senior label executive. "We need them to continue innovating."

So does that mean music industry douchebags have finally decided to be grateful to Apple and Steve Jobs? Or are they saying this out of one side of their mouths while out of the other side calling Apple the Great Satan?

Ridiculous premise

Isn't Apple now the #1 download music retailer? You don't achieve that status by giving music "diminished importance". Why do you people keep trying to stretch the truth?

Of all the ways to perceive the new iPod Nano, you pick the wrong way, trying desperately to stir up controversy any way you can.

Apple throws in a FREE video camera and gives the thing a voice recorder, a pedometer, and gaming capabilities, all to make it more salable and desirable as what it STILL IS--an iPOD! But noooooooo, you conveniently ignore the gift horse and keep peering down its mouth for any kind of malaise you can dream up!

Do your own innovating...

"We need THEM to continue innovating."? What a sad sad state of affairs for the record industry - waiting for someone else to innovate. He better stay unidentified before he gets fired for making such a stupid comment. If you did more of your own dam innovating, that comment wouldn't even be necessary. Go dust off your own stupid laurels which you've been resting on since the invention of the compact disc.

idiot analysts Bleaaaach

" as iPod sales are flattening after years of growth." Apple has 75+ of the mp3 player market. Just how long does anyone expect them to SELL MORE each year.... Constant sales means a lot in a shrinking market.

"as some 90 percent of US digital music sales are handled through the iTunes Store, " Analysts will not be happy until Apple has 150 percent of all sales in the world......

Does the term "physically impossible" every come into these peoples heads....
er......
NOPE ! :-)

If by de-emphasizing

they mean, publicly emphasizing other aspects of the company's business, then yeah. It certainly doesn't mean Apple will stop innovating. It "could" indicate that it's a robust and stable market with little demand for more product offerings in that category at this time.

Differentiating, not de-emphasizing

Ridiculous assertion on the heels of an event dedicated to revamping their music players. Apple is simply GROWING the MP3 player market by adding new features. And the only reason that ipod sales are flattening is that the iphone is taking that market segment -- and the iphone is still a music player, too. Overall hardware revenues keep going up, music sales keep going up.

Re: What report?

How about a link to the article?

Maybe the article isn't available for public review.

On the face of it, the hypothesis is interesting but seemingly false. They hold a media event called "It's only rock and roll" hosted by Steve Jobs and keep growing their music team, so it doesn't seem like much of a problem.

Well, they hold a media event, and they spend most of the time talking up the iPhone and the new iPod touch, touting it as a great GAMING device (but we think it still plays music).

Oh, and a one more thing on adding a camera to a nano! Woohoo!

What music stuff did they really push? Useless album extras. Redesigned iTunes interface (because someone at Apple apparently realized all the Apple apps in Snow Leopard finally looked consistent, and we can't have that!).

Does this mean...

10 minute demo means nothing?

I'm sorry but a 10 minute demo of iTunes' new features, most of which was music based, speaks volumes about Apple's interest in music.

iTunes LP is awesome because now there is no valid reason to buy overpriced CDs when you get all those features for less as downloads.

The iPhone IS an iPod as is the iPod Touch. All Apple is saying is that they're not just concentrating on music because the music industry are continuing to the the two-faced self-righteous hypocritical leeches that they are claiming Apple is ripping them off meanwhile they rip of the artists they claim to be representing. Apple is also branching out into new territory that came about inadvertently with the iPod Classic and the iPhone as they now realise the gaming capabilities of their devices are better than anyone had ever thought.

iTunes has become more than just a music player. It's now a life synchroniser synching apps, games, music, videos, etc.

resting on laurels

This is the music industry we are talking about.

When they say they are afraid Apple might rest on their laurels, they really mean they are afraid Apple might just be content to sell music to their customers, instead of threatening them with lawsuits and suing the bejeezuz out of them.

@testudo

"Well, they hold a media event, and they spend most of the time talking up the iPhone and the new iPod touch, touting it as a great GAMING device (but we think it still plays music)."

Well, gaming is relatively new to the platform and has just begun to take off. It would be flat down stupid not to bump that fact high in an event aimed at said platform, don't you think?

"What music stuff did they really push? Useless album extras. Redesigned iTunes interface..."

Music has been a part of the platform since day one, even on the iPhone. With that in mind, I'm actually surprised that Apple presented as much new features as they did. And yes - it was a lot more than you pretend it is.

Besides DRM free music, peoples wish-list here concerning music has for a long time been:

1. More content (album-art, lyrics and so on)
2. Easier ways to move music between iPods/iPhones
3. Easier ways to move purchased music around between multiple computers
4. Ringtones

Maybe not in that particular order. But Apple presented 3 out of those 4 things with that event. I wouldn't be surprised if the last one will be implemented in a near future.

Pretty good for an event that you say wasn't music orientated. Maybe your dislike of everything Apple does prevents you from seeing things as they are?